Corporate Profile - Eu Yan Sang
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Corporate Profile
About Eu Yan Sang Group
Listed on the Singapore Exchange, Eu Yan Sang International
Limited is Asia’s premier consumer healthcare company with the
aim to promote good health through the usage and dissemination
of knowledge of traditional Chinese medicine and other Asian
health practices. Today, Eu Yan Sang manufactures and markets
fine quality, Chinese herbs and medicine under the brand name
“Eu Yan Sang”. A household name in Asia for over 120 years,
Eu Yan Sang has since earned an unrivalled reputation as the
leader in the traditional Chinese medicine industry.
The Group currently offers more than 150 products under its
Eu Yan Sang brand name and over 1000 different types of Chinese
herbs and other medicinal products. Manufacturing activities are
carried out primarily at its two GMP-certified (Good Manufacturing
Practice) factories - one in Chai Wan, Hong Kong and the other in
Cheras, Kuala Lumpur, Malaysia. In addition, the Malaysian factory
has been awarded the ISO9002 certification since March 2001.
Together, they produce more than 50 different types of Chinese
proprietary medicine products, including its flagship products,
Bak Foong Pill and Bo Ying Compound.
Eu Yan Sang’s products are readily available in its own 61 retail
stores spread across Hong Kong, Singapore and Malaysia, as well
as in over 5,000 drugstores, supermarkets, medical halls and
convenience stores worldwide. These include outlets of wholesale
chains such as Mannings, Watsons, Wellcome and Park n Shop in
Hong Kong; Jaya Jusco, Carrefour, Makro and Parkson’s in Malaysia;
and Guardian, Cold Storage, NTUC Fairprice and Nature’s Farm
in Singapore. In addition, its cybershop at www.euyansang.com
offers its global customers the ease and convenience of buying
its products online.
1 Eu Yan Sang annual report 2001 Eu Yan Sang annual report 2001 1
Eu Yan Sang quality products are trusted for good health and general well being. 2 Eu Yan Sang annual report 2001
Eu Yan Sang quality products have been trusted for
generations in our care for mankind.
brands Q U A L I T Y
Today our customers have come to rely on our wide range of
healthcare products in maintaining their healthy lifestyle.
Eu Yan Sang annual report 2001 3
Chairman’s Statement
On behalf of the Board of Directors, I am pleased to present Hong Kong was our best performing market, with turnover rising
to you the Group’s annual report for the financial year ended 14% to $46.9m. This constituted about 57% of group turnover.
30 June 2001. Wholesale turnover increased in Hong Kong as a result of higher
exports to China. At group level, development costs incurred in
The Year In Review retail network expansion and higher advertising expenditure
The twelve months to 30 June 2001 was our first financial year as dampened our profitability in the first half of the financial year,
a listed company. During the start of this period, we witnessed but these initiatives added significantly to second half turnover
the slowing down of the US economy after a prolonged period of and profit margin.
growth. By early this year, it became clear that the US slowdown
We are ever mindful of macroeconomic developments and changes
has affected our region, the Group’s main markets. Against this
in legislation that have an impact on our business. In our last
backdrop of increasingly difficult conditions, we fared well and
annual report, I touched on the growing global interest in natural
achieved higher sales in all our major markets in Hong Kong,
medicines. This trend has attracted the attention of the Western
Malaysia and Singapore.
scientific community and legislators to the TCM industry.
Our focus during the year was to concentrate on our core activities. In Singapore, we are in full compliance with new legislation
To this end, we made selective additions to our product lines, covering the import, manufacture, sale and supply of Chinese
expanded our distribution network and increased our marketing proprietary medicines. The passage of the TCM Practitioners Act
efforts in advertising and promotion. Five new Eu Yan Sang stores in late 2000 will work towards raising the standard and
were opened during the year. We added new distribution outlets professionalism of registered TCM practitioners. In addition, the
for our products in Singapore and China. Marketing was stepped Economic Development Board (EDB) has established the
up to promote our key products such as bottled Bird’s Nest, Biomedical Research Council to study the funding of research
Bak Foong Pill, Lingzhi Cracked Spore Capsules and Bo Ying and education in TCM as part of EDB’s initiatives in the biomedical
Compound. With our expanded distribution network, we are sciences. We believe these and other similar developments will
enjoying better advertising efficiency. boost the public image of TCM as a complementary medicine,
and we welcome them.
4 Eu Yan Sang annual report 2001In response to these changes, we have made several investments
during the year, which we believe will accrue long term benefits
to our Group. In addition to our previously mentioned 45% stake
in Oxford Natural Products Asia Pte Ltd, we have established
Applied Biomedical International Pte Ltd (ABMI), a 100% owned
subsidiary and took a 75% stake in Eu Yan Sang Australia Pty Ltd
(EYSA). The Group will be strengthened by ABMI’s expertise in
providing systematic and analytical approach in products
evaluation. Consistent product quality and safety is achieved and
maintained by adopting stringent sampling and validated testing
and manufacturing procedures and protocols. Upon attaining Flagship pr oduct Bak F oong Pill
internationally-recognised accreditation for specialized chemical
and microbiological tests, ABMI would offer these services to
interested third parties.
Through EYSA, we have invested in the Natural Health Therapies
Group (NHT). In Australia, the NHT Group is developing a network
of Integrative Medicine (IM) centres which combine conventional
Western medicine with Chinese medicine and natural therapies.
This investment would allow us to participate in the early stage
development of a comprehensive form of medicine that could
eventually have worldwide appeal.
Eu Yan Sang annual report 2001 5Chairman’s Statement
Lingzhi Cr acked Spor es Powder Capsules
For the twelve months to 30 June 2001, group turnover grew Our extensive range of products will be selectively expanded.
14% to $82.3m, but group net profits have remained at $5.76m. Following our investment in Herose Pharma International Pte Ltd,
This was because we have consciously invested in our product we are currently working with our joint venture partner to
promotion and R&D efforts, and they have contributed to short introduce herb-based products for the treatment of certain
term costs. On the expanded capital base, earnings per share was skin conditions. Together with our investment, we have
2.02 cents. As a consequence of the listing, group net tangible secured a 20-year exclusive licence to manufacture and market
assets per share increased to 15.9 cents as at 30 June 2001. Your Herose products.
Board is recommending a final dividend of 0.525 cents per share.
Payment of dividend is subject to shareholders’ approval at the Our recent investment of a 48.5% stake in Botanical Health
forthcoming Annual General Meeting. Resources Inc. (BHRI), a Californian TCM-based herbal consumer
healthcare company will allow us to exploit the market potential
for TCM-based herbal beverages. Through BHRI, we will develop
Building On Our Strengths
and introduce a range of herbal beverages and tonics for the
Our core strengths lie in our trusted Eu Yan Sang brand name,
Asian markets. Here again, we will have long-term marketing and
our family of Eu Yan Sang products and our diversified distribution
distribution rights for the full range of BHRI products in Asia.
network. As in the previous financial year, we will continue to
invest in our core activities. Our product branding programme In the current year, we will be introducing our new supporting
will continue through advertising and promotion in the printed initiatives in scientific services in Singapore and IM centres in
media. This is supported by an ongoing product repackaging Australia. We are conscious of the need to clearly define the
programme designed to enhance the consumer appeal of our scope of our R&D or analytical activities so as to manage costs
products. We are also selectively refurbishing some older stores and direct our efforts productively. IM centres in Australia will be
to achieve a common retail image consistent with our overall established at a rate that is acceptable to the marketplace and
branding approach. The desired end result is to broaden our the measured pace of expansion will allow us to work through
consumer base by appealing to a wider group of potential any initial problems that we may encounter. Our limited
customers as a consumer healthcare group. investments in these new synergistic initiatives will strengthen
6 Eu Yan Sang annual report 2001our core activities, and at the same time allow us to venture into
related areas that can be potentially lucrative in the longer term. Bottled Bir ds’ Nest and Essence of Chick en
BHRI and EYSA have existing distribution networks in their
respective countries, and we intend to use these networks to
enhance our overall distribution system in the US and Australia.
Global economic activities have remained subdued, and recent
unfortunate events in the US have added to the general gloom.
Under such uncertain conditions, it is prudent for us to manage
our business conservatively in the current year. Costs will be
carefully managed, and extra efforts will be expanded to generate
additional sales from our distribution network. Barring any
unforeseen circumstances, the Group is expected to remain
profitable in the current year.
A Word of Thanks
On behalf of the Board of Directors, I would like to thank our
management and staff whose dedication and teamwork have
contributed to the achievements of the Group in the previous
financial year. In addition, I would also like to thank all our
customers, bankers, business associates, suppliers and Joseph Eu
shareholders for all their continuing support. Chairman
Eu Yan Sang annual report 2001 7Experience a world of comfort and shopping convenience at our retail outlets. 8 Eu Yan Sang annual report 2001
We maintain high standards of product and service excellence to ensure
that our customers are satisfied with their shopping experience.
services F I V E S T A R
Our people develop long term relationships with their customers,
and this has formed the foundation of our approach to business.
Eu Yan Sang annual report 2001 9Board of Directors 1st row (left to right) Joseph Eu Richard Eu Clifford Eu 2nd row (left to right) David Yeh Robert Eu Dr Jennifer Lee 1 0 Eu Yan Sang annual report 2001
Corporate Data Senior Management
Board Of Directors Registered Office Head Office
269A, South Bridge Road Yin Fah Kam
Joseph William Yee Eu Singapore 058818 Chief Technical Officer, Eu Yan Sang International Ltd
Tel: 225 3211 Executive Director, Applied Biomedical International Pte Ltd
Non-executive Chairman
Angie Pang
Richard Yee Ming Eu Group Human Resource Manager, Eu Yan Sang International Ltd
Managing Director and CEO Share Registrar James Xiao
Sr. Manager, Research and Development, Eu Yan Sang International Ltd
Clifford Yee Fong Eu Lim Associates (Pte) Ltd Jennifer Leong
Executive Director 10 Collyer Quay #19-08, Financial Controller, Eu Yan Sang International Ltd
David Chung Woo Yeh Ocean Building
Singapore 049315 Australia
Independent Director
Tel: 536 5355 Menno Veeneklaas
Robert James Yee Sang Eu Managing Director, Eu Yan Sang (Australia) Pty Ltd
Non-executive Director Joachim Fluhrer (Dr)
Auditors Medical Director, Eu Yan Sang (Australia) Pty Ltd
Dr Jennifer Gek Choo Lee
Craig McIntosh
Independent Director Ernst & Young Finance Director, Eu Yan Sang (Australia) Pty Ltd
Certified Public Accountants
Dr David Yee Tat Eu 10 Collyer Quay #21-01 Hong Kong
(alternate to Richard Eu) Singapore 049315 Alice Wong
Laurence Yee Lye Eu Partner-in-charge: Director and General Manager, Eu Yan Sang (Hong Kong) Limited
(alternate to Clifford Eu) Daniel Chung Hian Soh Jaby Cheng
General Manager, Synco (H.K.) Limited
Billy Wah Yan Ma
Yuen Wah Yip (Dr)
(alternate to Robert Eu) Principal Bankers Manager, Quality Assurance, Synco (H.K.) Limited
Overseas Union Bank Limited Malaysia
Audit Committee 1 Raffles Place, OUB Centre
Eng Hock Lok
Singapore 048616 General Manager, Eu Yan Sang (1959) Sdn. Berhad
Dr Jennifer Gek Choo Lee
Public Bank Berhad Jasmine Wong
Chairman General Manager, Eu Yan Sang Marketing Private Limited
Menara Public Bank
David Chung Woo Yeh 146 Jalan Ampang, 50450 Kuala Lumpur Win Soong Lui
Malaysia General Manager, Weng Li Sdn. Bhd.
Clifford Yee Fong Eu
Standard Chartered Bank Singapore
13th Floor, Standard Chartered Tower Chong Hung Lim
Company Secretaries 388 Kwun Tong Road, Kwun Tong General Manager, Eu Yan Sang Singapore Pte Ltd
Hong Kong
Clifford Yee Fong Eu USA
The Development Bank of Jeffrey A. Stein
Yvonne Choo, FCIS Singapore Ltd Chairman, Botanical Health Resources Inc.
6 Shenton Way, DBS Building, Tower One Edgar B. Veytia
Linda Law, FCIS Singapore 068809 Chief Executive Officer, Botanical Health Resources Inc.
Steven Piccus
Managing Director, Botanical Health Resources Inc.
Eu Yan Sang annual report 2001 1 1100% Eu Yan Sang (Singapore) 100%
EYS Ventures Pte Ltd
Private Limited
Group Structure 100% Eu Realty (Singapore)
USA
48.5%
Botanical Health Resources Inc.
Private Limited 50%
PRC Hua Sheng He Enterprise Co.
100% Eu Yan Sang Marketing
Private Limited
100% Applied Biomedical
Singapore International Pte Ltd
100% EYS KangHong Herbal
Pte Ltd
50% Yin Yang Spa
Pte Ltd
45% Oxford Natural Products
Asia Pte Ltd
Eu Yan Sang
International Ltd 100% Eu Yan Sang (1959)
Sdn. Berhad
100%
Weng Li Sdn. Bhd.
Malaysia
100% Eu Yan Sang Heritage 100%
Sdn. Bhd. Synco (H.K.) Limited
100%
100% Degree Achievement Eu Yan Sang (Properties) Limited
Sdn. Bhd.
100%
Eu Yan Sang (China Ventures) Limited
100%
Top Lot Limited
100% Eu Yan Sang
(Hong Kong) Limited 100%
Eu Yan Sang (Export) Limited
Hong Kong
100% EYS Medical
Services Limited
50%
Aroma Fresh Pty Ltd
75%
Australia Eu Yan Sang (Australia)
Pty Ltd 51%
Natural Health Therapies Pty Ltd
100% 100%
Nutron Health Pty Ltd YourHealth Group Pty Ltd
100%
Companies with less than 5% shareholding are not featured
YourHealth Manly Pty Ltd
1 2 Eu Yan Sang annual report 2001Calendar of Events
Year 2000 April • Establishes EYS Kang Hong Herbal Pte Ltd
July • Eu Yan Sang International Ltd (EYSI) lists on and Applied Biomedical International Pte Ltd.
the Main Board of the Singapore Exchange.
May • Eu Yan Sang (Hong Kong) launches a new
August • Eu Yan Sang (Hong Kong) Ltd (EYSHK) product – Premium Bird’s Nest Series.
collaborates with the Chinese University of
Hong Kong to conduct scientific research on • Eu Yan Sang Malaysia launches Fa Yien,
the action mechanisms and bio-active our very own branded Raw Bird’s Nest.
ingredients of the Bak Foong Pill, one of EYS’s
June • Eu Yan Sang International Ltd invests
flagship product.
in Herose Pharma International Pte Ltd –
November • Yin Yang Spa Pte. Ltd, a 50%-50% joint a company engaging in the development of
venture between EYSI and Renewal new Chinese medicinal products. One such
International Pte Ltd launches its innovative product is known as “Herose”, a medication
range of herbal spa products based on that is used for treating certain skin conditions.
Chinese herbal formulations under the brand
July • Eu Yan Sang Australia Pty Ltd (EYSA)
name “ZING”.
establishes a holding company to pursue
• New Product - Lingzhi Cracked Spores Powder investment opportunities in the Natural Health
Capsules launches in Singapore. industry in Australia, and to import and
distribute selected Eu Yan Sang products into
Year 2001 these markets.
January • Eu Realty (Singapore) Pte Ltd, a 100% owned
subsidiary, establishes a joint venture company, September • Eu Realty (Singapore) Pte Ltd, enters into an
Chengdu Hua Sheng He Enterprise in Chengdu, Investor Rights Agreement to acquire shares
China with two China partners – West China in Botanical Health Resources Inc., – a
(Huaxi) University of Medical Sciences and company that retails branded Traditional
Sichuan Xin Yang Technology Company to Chinese Medicine based herbal and wellness
develop scientific-based herbal medicine to related products under the proprietary line of
treat lifestyle diseases. ‘Elixir’ and “Gan Bei Tonics” brands.
• Kuching retail outlet opens, our first Eu Yan • Eu Yan Sang Australia enters into a Share
Sang retail outlet in Sarawak, East Malaysia. Purchase Agreement to purchase 50% equity-
stake in Aroma Fresh Pty Ltd, which is involved
February • The Paragon, Singapore retail outlet opens. in product development and distribution of
This is the first outlet in the heart of Orchard aromatherapy and natural beauty products
Road, the shopping haven in Singapore. under the brand name “Aroma Fresh”.
Eu Yan Sang annual report 2001 1 3High quality healthcare products
delivered through innovation.
1 4 Eu Yan Sang annual report 2001Innovation is an important part of our success.
science I N N O V A T I V E
Through scientific innovations, we develop new and consistently high quality healthcare products
so that our customers can enjoy and benefit from using Eu Yan Sang products.
Eu Yan Sang annual report 2001 1 5Operations Review
Branded Products
• Manufacturing
• Wholesale
• Retail
American Wild Ginseng Tea and Jasmine Tea Science
• R&D
• Diagnostics
Services • Profiling & Standardisation
Retail
We started the financial year with 52 retail outlets, having opened • Clinics
• Education
9 outlets in FY 2000. A total of 5 new outlets were added during
the year, 3 in Singapore and 2 in Malaysia. These new stores,
together with the ones added in FY 2000 contributed partially to
the growth of group retail sales of 10.4% to $58.5m in FY 2001.
Under increasingly competitive conditions, we managed to
maintain same store sales in Singapore and Malaysia, and
registered a growth for Hong Kong.
The strategy for our retail network would be to optimise store
sales through the introduction of suitable new products as well
as undertaking selective advertising and promotion campaigns
to raise product awareness among consumers. In addition,
we will continue to expand our retail network by seeking suitable • Singapore
• Malaysia
high-traffic locations for opening new stores. The performance of • Hong Kong
existing stores will be periodically reviewed to determine if the • Australia
slower performing stores could benefit from relocation. • USA
Our revamped cybershop at www.euyansang.com now offers each
country a customised website for greater consumer shopping
convenience. Together with our recently deployed Customer
Relationship Management software, such customised website will
enable us to target promotions at our 65,000 VIP cardholders
in their respective markets.
1 6 Eu Yan Sang annual report 2001Paragon, Singapore Yuen Long, Hong Kong Jalan Meru, Klang, Malaysia
Wholesale and Exports New Products
Group turnover for wholesale and exports rose by 25% The timely introduction of suitable new products is important for generating
to $23.5m for the year. All three major markets additional sales through our retail outlets and distribution channels.
recorded higher wholesale turnover. In Malaysia, we New products could originate from joint ventures, R&D initiatives or the
increased our general market coverage of the acquisition of long term product marketing rights. In addition, we are
supermarkets, convenience stores and independent continuously looking at offering different versions of our main products to
retail outlets. For Singapore, three new major properly serve the various segments of our customers. An example of this
distributors were appointed during the year: Guardian, would be our recent introduction of a premium concentrated version of bottled
Watsons and Nature’s Farm with a combined total of bird’s nest in Hong Kong, and we will continue to work at offering new
173 outlets. This accounted for the 175% increase in innovative bird’s nest-based products that are popular with our Asian
Singapore wholesale turnover to $1.1m. In Hong Kong, customers. Our premium concentrated bottled bird’s nest was well received
we benefited from the wholesale changeover through in Hong Kong, and we will be launching the product soon in Singapore.
improved sales; we now handle the major wholesale
accounts with an appointed agent covering the rest Our recent investment in Botanical Health Resources Inc. marks our entry
of the market. into the TCM-based herbal beverage and tonic market. Herbal beverages and
tonics will reinforce our position as a consumer healthcare company, and
Under the new exclusive distributor for China, our their appeal to younger consumers will broaden our customer base. These
exports there grew by 80% to $2.9m due to wider herbal beverages and tonics, being daily consumables, have high sales volume
market coverage. Currently our [Bak Foong Pill] and potential and are suitable products for our retail outlets and distribution
[Bo Ying Compound] are available in 17 hospitals and channels. We expect to begin the retailing of these products in the current
over 4,000 clinics, drug stores and medical halls in year. BHRI’s range of “Gan Bei” tonics are widely sold in California and a
5 of China’s 31 provinces. We are optimistic of our marketing programme is being put into place to roll out the products to other
business prospects in China and will continue to work parts of the US.
with our exclusive distributor to further exploit the
market potential there. Following our joint venture with Renewal International Pte Ltd, we have
developed and wholesaled a wide range of TCM based Zing herbal spa
products to spa operators in Singapore.
Eu Yan Sang annual report 2001 1 7Operations Review
Deer’s Tail Pills and So Hup Pills
Scientific services
Our limited approach in applying Western scientific methods and
techniques to Chinese medicine will be carried out through 45%
owned Oxford Natural Products Asia Pte Ltd and 100% owned
Applied Biomedical International Pte Ltd. Through these processes,
we intend to achieve a higher degree of standardisation for our
herb-based products. In some instances, we will work towards a
scientific verification of the product efficacy claims. With a better
understanding of the herbal ingredients, we can hopefully develop
new products for more specific treatments. A Range of Herbal Capsules
With 50% funding from the Innovation and Technology Fund in
Hong Kong, we have embarked on a three-year research and
development project on the therapeutic actions and bioactive
ingredients of Bak Foong Pills with the Chinese University of
Hong Kong. Early this year, we formed a Chengdu joint venture
in partnership with the West China University of Medical Sciences
to develop new classes of Chinese herbal medicine by applying
Western scientific principles. Future R&D initiatives are likely to
follow this joint venture model which permits the entry of other
co-investors to add value to the joint venture.
1 8 Eu Yan Sang annual report 2001Cheras, Malaysia, GMP Factory Chai Wan, Hong Kong, GMP Factory
Integrative Medicine Centres & TCM clinics
Eu Yan Sang Australia owns a 51% stake in Natural Health Therapies Pty Ltd
(NHT), which is involved in Integrative Medicine (IM). In 1999 / 2000,
Integrative Medicine was estimated to account for about A$1.9 billion of the
A$50 billion Australian health industry. It is the intention of NHT to build a
small network of branded “YourHealth” Integrative Medicine centres covering
a few major cities in Australia. The first centre will be opened in Manly, near
Sydney in October this year. Under a subsequent phase, NHT will franchise its
brand and management processes to the smaller independent integrative
medicine centres.
We are working with NHT to develop a comprehensive range of herbal
products and nutritional supplements to supply NHT’s IM centres, as well as
A Range of Herbal Candies
to support the other existing smaller integrative medical centres in Australia.
Some of the herbal products and nutritional supplements developed with
NHT could be sold through the Group’s existing retail network and distribution
channels in Asia. Our recent acquisition of a 51% stake in Aroma Fresh Pty
Ltd will provide aromatherapy products to the IM centres. Currently, these
aromatherapy products are available in about 600 supermarkets (including
Coles, Myers and Woolworth), discount stores, pharmacies and selected gift
shops throughout Australia.
Two TCM clinics have been established within our existing stores in Malaysia,
and a third clinic will open later this year with the completion of refurbishment
at our South Bridge Road store in Singapore. These clinics offer our customers
greater convenience in accessing Chinese medicine as an additional form of
medical therapy.
Eu Yan Sang annual report 2001 1 9Corporate Governance
The Group is committed to maintaining a high standard of corporate governance in order to protect the interests of its shareholders and
has put the following in place:
BOARD OF DIRECTORS
The Board comprises:
Mr Joseph William Yee Eu (Non-Executive Chairman)
Mr Richard Yee Ming Eu (Managing Director & CEO)
(Alternate: Dr David Yee Tat Eu)
Mr Clifford Yee Fong Eu
(Alternate: Mr Laurence Yee Lye Eu)
Mr Robert James Yee Sang Eu
(Alternate: Mr Billy Wah Yan Ma )
Mr David Chung Woo Yeh (Independent Director)
Dr Jennifer Gek Choo Lee (Independent Director)
The Board reviews and approves key strategic operational and business expansion plans, major investments, funding decisions, the
financial performance of the Group and its internal controls, and also ensures that the principal risks of the Group are identified and
properly managed. It also reviews and approves announcements of the half-year and full-year results of the Company and the Group.
The Board is also responsible for the establishment of a healthy corporate environment which is conducive to promoting and maintaining
good corporate governance within the Group.
During the financial year, the Board met four times. Full attendance for three of the meetings was recorded.
The duties of the Board are carried out directly or indirectly through various committees of the Board or through key management
personnel.
• Audit Committee
The Audit Committee comprises:
Dr Jennifer Gek Choo Lee (Chairman)
Mr David Chung Woo Yeh
Mr Clifford Yee Fong Eu
The Committee is governed and regulated by a Terms of Reference which sets out its role, responsibilities and proceedings.
2 0 Eu Yan Sang annual report 2001Corporate Governance
• Audit Committee (cont’d)
During the financial year, the Committee met twice. It reviewed the scope of both the external and internal audit plans, the
assistance given by Management to the external and internal auditors, the findings and recommendations of the internal auditors
and made the appropriate recommendations to the Board, and the announcements of the half-year and full-year results of the
Company and the Group.
The Committee has recommended the re-appointment of Messrs Ernst & Young as Auditors of the Company at the forthcoming
Annual General Meeting.
In the opinion of the Board, the Company has complied with the Best Practices Guide in respect of audit committees issued by
the Singapore Exchange Securities Trading Limited (“SGX-ST”).
• Securities Transactions
The Group has adopted a Code of Best Practices on Securities Dealings (the “Code”) to govern and regulate dealings in the
Company’s securities by officers of the Group. The Code was based on the Best Practices Guide set out in the Listing Manual of
the SGX-ST.
• Employee Share Option Scheme (“ESOS”) Committee
An ESOS committee comprising Dr Jennifer Gek Choo Lee, Mr Richard Yee Ming Eu and Mr Robert James Yee Sang Eu has been
set up to administer the Eu Yan Sang ESOS. The ESOS was established to provide executives, directors and employees of the
Group with an opportunity to participate in the equity of the Company and to motivate them towards better performance
through increased dedication and loyalty.
• Management Committee
Senior executives of the Group, including the executive directors and group general managers, meet regularly to review and
assess the Group’s operational performance, brainstorm business strategies, and analyse and evaluate new projects and business
expansion opportunities.
• Group Procedures
The Group has adopted a code of conduct covering pertinent operational, financial and administrative aspects of the Group’s
business, including setting authority limits and guidelines for all employees. This code of conduct has been incorporated into a
‘Group Procedures and Authorities’ (GPA) Manual. The GPA Manual is reviewed from time to time to ensure that the Group
complies with prevailing laws and regulations in countries that the Group operates in.
Eu Yan Sang annual report 2001 2 1Financial Highlights
Profit Before Tax & Profit After Tax
Turnover ($m) and Extraordinary Item ($m)
42 60 64 72 82 6 6 5 7 7 Profit Before Tax
4 (5) 4 6 6 Profit After Tax and
Extraordinary Item ($m)
100 8
80 6
60 4
40 2
20
(5)
‘97 ‘98 ‘99 ‘00 ‘01 ‘97 ‘98 ‘99 ‘00 ‘01
EPS (cents) Shareholders’ Equity ($m) NTA Per Share (cents)
1.6 2.1 1.9 2.7 2.0 37 30 32 17 45 18 14 15 8 15.9
3.0 50 20
40
15
2.0
30
10
20
1.0
5
10
‘97 ‘98 ‘99 ‘00 ‘01 ‘97 ‘98 ‘99 ‘00 ‘01 ‘97 ‘98 ‘99 ‘00 ‘01
2 2 Eu Yan Sang annual report 2001You can also read
